THE CITY’S MILK

Southland Times, Issue 25362, 14 August 1935, Page 8

THE CITY’S MILK

SUPPLIES AND PRICES FORMATION OF COUNCIL PROPOSED QUESTION OF CONTROL Following on representations by a deputation from the City Milk Retailers’ Association and the City Wholesale Milk Producers’ Association to the City Council last evening, preliminary steps were taken towards the control of Invercargill’s milk supplies and prices. The City Council set up a subcommittee to confer with the two associations represented in the deputation. The sub-comrnittee will then report to the council on the desirability of a milk council being set up. Those sponsoring a milk council set out their- claims in the following preliminary letter to the council: “There are at present two organizations concerned in the milk supply tor the Citv of Invercargill: (a) the City Milk Retailers’ Association; and (b) the City Wholesale Milk . Produce! s Association. The two organizations ate combining for the purpose of making representations to your council with the ultimate object of bringing into existence a milk council on somewhat similar lines to the Auckland Coun-

cil, in which would be vested the control and regulation of the whole ot the city milk supply. It is not proposed at this juncture to go into details regarding the milk council, beyond stating that the majority of the members ot such a council must represent, the consuming public and not those interested in the trade, thereby safeguarding any suggestion of exploitation ot prices. Under the climatic conditions prevailing in Southland, the production of milk in winter months is approximately five times greater than keeping up a summer supply only. It also requires at least 12 months organization to establish an all the year round herd. Uneconomic Competition. “Owing to uneconomic and irregular competition, retailers are now unable to guarantee the producer a price ahead that will cover cost of production, with the result that winter producers are not prepared to keep up a regular supply, and several of those hitherto engaged in winter production have intimated that they will cease to milk next winter unless some stabilization of prices is effected. In this connection it is within the knowledge of our associations that a bigger proportion of city milk producers than any other class of farmer have been unable to meet their obligations and have been forced to apply for relief. As a result of the chaotic conditions prevailing, there has not only been an acute shortage of milk this winter, with prospects being worse next winter, retailers having had frequently to ration their customers, but retailers are complaining as to the quality of the milk, which in many cases has its original source in unlicensed dairy farms. Unsuccessful efforts have this winter been made to obtain milk from Dunedin. “In the springtime the market is further disturbed and disorganized by summer milkers, who have sat quiet during the winter, coming on to the town and cutting prices below the economic cost of production as regards the all the year round producer, on whose efforts the very existence of a continuous city supply depends. The above associations respectfully make the following submissions: (1) It is recognized that the factory milker is a national asset in so far as he produces an important part of our exports. (2) The city or all the year round proi ducer is not merely a national asset, i but a civic asset, as on his efforts the city absolutely depends for its continuous milk supply. (3) Efforts are being made all over the world (your City Council not excepted) to restore to the worker a reasonable wage. Consideration For Producer Asked. “The city on the one hand and the city milk producer on the other are so interdependent that it should be the aim of the council to extend to the producer the same consideration that it is rightly endeavouring to show to its j employees. The producer works 365

: days a year and during winter months j is working five hours a day by artificial i light; his duties involve being out in j all weathers. ' “If a milk council were formed, the i following objects would be achieved: — I (1) After a careful investigation as to j costs, prices would be fixed for winter ■ and summer, both as regards the re- : ‘ailer and the producer, that would i leave a reasonable • living wage. . (2) i Retailers would then be in a position ' to make their commitments from year Ito year. (3) Producers having yearly I contracts would make their plans acj cordingly and a continuous supply of milk of good quality would be assured. Our organizations have been informed that the city of Napier is proceeding with the formation of a milk council on the lines above indicated.” In the deputation Messrs P. J. Coaley and R. Cochrane represented the Retailers’ Association and Messrs Eric Russell and W. J. Caldwell the Producers’ Association. Effects of Price-Cutting.

After introducing the deputation Mr Russell said that many of the retailers had been put in an invidious position during the past winter through pricecutting. Frequently they had been unable to get an adequate supply and they had also complained of the quality of the milk. Price-cutting had been rife in other towns, with the result that a milk council had been formed in Auckland and a similar organization was being formed in Napier. Speaking of the local position, Mr Russell went on to say that milk had been coming from long distances —as far as Otago—to Invercargill. On one occasion a retailer, had tried to secure 40 gallons and had been able to get only 23. Admittedly, also, there were producers who had their own prices and got them, but there was a great deal of milk being sold in Invercargill at an uneconomic price. The time had come when a milk council should be formed on the lines of that in Auckland. “I suggest that the council appoint a sub-committee to meet the representatives of the retailers and producers to discuss the position and report to the council before anything is done,” said Mr Russell. “There is too much detail in connection with the whole thing to occupy you to-night. We are after a stabilization of prices rather than an increase.” „ , , , Councillor W. G. Tait: Could the milk council obviate the trouble of a rush of suppliers coming forward with a flush of milk after the winter? Issue of Licenses. Mr Russell: The milk council would have the sole right of issuing licenses and the first licenses would be granted to those who supplied milk all the year round. Councillor G. E. T. Dorman: You have made no reference to representation from the consumers. We as a council have to consider the interests of all parties—producers, retailers and consumers. Mr Russell: The producers would have representation on the milk council. It would not do for the producers and consumers to have a majority on

the organization; the consumers would have their full say. Scheme Favoured. Councillor J. H. Tattersfield: I am entirely in accord with some method of control being adopted. Some of the milk has not been up to standard. The Mayor (Mr John Miller): That is a matter for the inspector. Councillor Tattersfield: It is not altogether a matter for the inspector. Milk comes dribbling in from all kinds of sources, '-he object should be to protect the retailers, not only as far as price is concerned, but for quality. We want to see the consumers get a fair spin both in the quality and the price of the milk they buy. I suggest we form a sub-committee to confer on the subject of setting up a milk council and thus put Invercargill’s milk supply beyond reproach. The Mayor again questioned the use of the word “reproach,” commenting on the posiiton of the city inspector. The city inspector (Mr K. Bleakley), who was present at the time, offered to put in a report to the council rather than make a statement then. This offer was accepted, the Mayor asking him to put in the report as early as possible. Councillor Dorman: One Sunday morning I noticed five different milk deliveries pass a certain point. That represents considerable waste. We can’t control the price until we first remove inefficiency and cut out unnecessary transport. By virtue of being the mover of the motion Councillor Tattersfield became associated with the sub-commit-tee, and for other members he nominated Councillors Tait and A. J. Service. . . The motion >vas carried.